The new rules don’t allow the MLS to publish on active listings how much buyer-agent commission is being offered by the seller and listing agent. But in a strange quirk, the CRMLS – the biggest MLS in California covering about half of the state – now requires that when marking a listing sold, the listing agents have to publish how much compensation was paid to the buyer-agent.
Since August 17th, there have been 173 NSDCC closed sales, and 54 of them published the buyer-agent compensation paid (CRMLS and SDAR are the competing associations/MLS companies in the county, and SDAR doesn’t require these stats from listing agents).
Of the 54 sales who published the amount paid, here is the breakdown:
2.5%: 25 (46%)
2.25%: 4 (7%)
2.0%: 20 (37%)
1.5%: 2 (4%)
1.0%: 1 (2%)
Zero: 1 (2%)
This is roughly the same mix that we’ve seen since April when I first started logging the commission rates being offered by the listing agents. We will follow this trend because buyers deserve to know the chances of them having to pay some or all of the commission to their buyer-agent.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I have every intention of persuading the seller and listing agent to pay my buyer-agent fee.
In the event that we get stuck with an unreasonable seller/listing agent who insists on paying little or nothing – and the buyer doesn’t want to pay either – then I’m not going to hold you to it. I’m going to turn you over to the listing agent and bow out gracefully, if you don’t mind, because Donna doesn’t work for free (she plugs in once we have an accepted offer).
Why would I be willing to work for free for weeks or months? Because that risk has always been part of the buyer-agent environment – historically, we have always risked spending our time without any promise of getting paid. It’s the main reason why we deserve good compensation – it is risky. I will take my chances that I can get the seller and listing agent to come around, and/or have the buyer recognize and appreciate our services enough that I’ll get paid. If not, then fine.
Fair?
Yes.
Thanks Old School.
Nothing is going to change that much, just more paperwork.